Offshore (page 11) - FATF Introduction

Remember, Tax AVOIDANCE is legal

Ask your offshore services provider about facilities to enable confidential transfer of onshore funds offshore. As long as your are not involved in criminal activity -- and remember: tax avoidance is legal-- they have no reason not to help you. It used to be that you opened a bank account for the purpose of holding funds, whether in cash or another form, as well as to receive funds and send funds out. Transferring money out of an account involved no more than sending a short instruction to your banker. The receipt of funds required no interaction with a bank except for checking an account statement. All that has changed!

"I'm Not a Money Launderer"!

While your bank will still refer to you as its "valued client", it is nowadays your task to serve the needs of your banker, before s/he attends to yours. What your apprehensive, and sometimes confused or paranoid banker needs most, is constant reassurance and proof that your transactions fall within the legal guidelines as set by his new masters at the Financial Action Task Force on Money Laundering (FATF).

"Hold on," you might say, "I'm not a money launderer!" You are quite right -- the vast majority of us are not. But as you hear daily, the world is at war against international crime and money laundering -- and unfortunately "guilty until proven innocent" is becoming the new line of thinking. Actions of those who still naively believe that they can deal with their own money however they please could be compared to taking a leisurely walk through a minefield: taking the wrong step can have serious, negative consequences.

Unusual Account Activity?

Although your banker will still discuss "private banking services" and "your investment goals" with you, other issues may be on his mind, too: "unusual account activity", "source of funds" or "suspicious money-in -- money-out patterns" which have become the new dark buzzwords in the financial community.

Fortunately, there are some common-sense rules and strategies you can follow in order to avoid stepping on one of the metaphorical landmines. Those wishing to stay in control needn't feel deterred. Remember, this is a situation which has been forced on you by a consensus among high-tax nations concerned about the erosion of their tax bases.​

Banks are busily reporting so-called unusual financial transactions. Establishing an effective line of communication with your account officer should be your first line of defence.